Donegal Group (NASDAQ:DGICB) Shares Gap Up - Time to Buy?

Key Points

• Gapped up: Shares gapped up pre-market from $18.88 to $19.89 and last traded around $19.73 on light volume (~688 shares).
• Dividend raised: Quarterly dividend increased to $0.175 (from $0.17), annualized $0.70 for a ~3.6% yield; ex-dividend date May 1 and payable May 15.
• Mixed fundamentals and sentiment: Weiss Ratings reiterated a "Hold," and Donegal has a market cap of ~$728M with a P/E of 9.6, recent quarterly EPS of $0.46 and ROE of 12.8%, while institutional ownership remains low (≈1.2%).

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $18.88, but opened at $19.89. Donegal Group shares last traded at $19.7250, with a volume of 688 shares trading hands.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a "hold (c)" rating on shares of Donegal Group in a report on Friday, March 27th. One investment analyst has rated the stock with a Hold rating, According to MarketBeat.com, Donegal Group presently has an average rating of "Hold".

Donegal Group Trading Down 0.5%

The company has a market capitalization of $727.66 million, a P/E ratio of 9.59 and a beta of 0.04. The business has a fifty day moving average price of $16.92 and a 200 day moving average price of $16.52. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.05.

Donegal Group (NASDAQ:DGICB - Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The insurance provider reported $0.46 EPS for the quarter. Donegal Group had a return on equity of 12.81% and a net margin of 8.11%.The company had revenue of $241.87 million for the quarter.

Donegal Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be issued a dividend of $0.175 per share. The ex-dividend date is Friday, May 1st. This is a boost from Donegal Group's previous quarterly dividend of $0.17. This represents a $0.70 annualized dividend and a yield of 3.6%. Donegal Group's dividend payout ratio is currently 34.15%.

Hedge Funds Weigh In On Donegal Group

An institutional investor recently bought a new position in Donegal Group stock. Raymond James Financial Inc. purchased a new position in shares of Donegal Group, Inc. (NASDAQ:DGICB - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 5,231 shares of the insurance provider's stock, valued at approximately $93,000. 1.19% of the stock is owned by hedge funds and other institutional investors.

Donegal Group Company Profile

Donegal Group Inc, an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. The company offers private passenger automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles.

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